Item 5. Fees and Compensation
For our Investment Consulting Services, we charge a fixed retainer fee which includes performance
evaluation, asset allocation and diversification analysis, investment policy review and/or development,
investment consulting, investment manager searches, performance reporting and periodic client
meetings. Annual fees are typically billed quarterly, in advance (unless agreed otherwise), per the
schedule outlined in the client’s executed advisory agreement. Fees may be paid via check remittance
directly from the client, Automatic Clearing House (ACH) or wire deposits, or by the custodians upon
direction from the client. We do not directly debit fees from clients’ custodial accounts.
BKIC reserves the right to propose changes in fees (increases or decreases) when the scope of services
is subject to material change at the request of a client or when fee reviews indicate there has been no
change in the fee for a period of time.
When implementing an existing client’s fee change (due to a change in assignment or client-specific
annual fee reviews for example), BKIC discusses with the client the rationale for change as well as fee
payment options. Clients are normally charged an annual, flat dollar fee, billed every three months in
advance. Clients are given the option for a fixed fee (which could also be held for x number of years) or
an annual inflationary fee increase based upon the Consumer Price Index or a mutually agreed-upon
annual percentage increase. It is the client’s decision which fee option they prefer; fee changes must be
mutually agreed upon by both parties and confirmed in writing by the client. Clients are then provided
with a revised schedule(s) to be kept with their original client agreement with BKIC.
Under certain consulting arrangements, direct expenses incurred by BKIC when conducting manager due
diligence on behalf of a specific client, such as travel expenses, are paid by such client. Direct expense
reimbursement negotiations take place when fees are negotiated, often vary by client, and are detailed in
the client agreement. In such cases, the Firm ensures that expenses are reasonable and customary and
directly related to the client assignment in accordance with our travel expense policy.
Occasionally, clients also engage our Firm on a project basis for one or more of the services described
above. Fees for project engagements are billed at a rate that is reflective of the nature of the assignment.
For fixed fee engagements, a portion, or all, of the fixed fee is generally required at the commencement of
the project, with any balance billed upon completion of the project. For hourly engagements, the fee is
generally invoiced at the conclusion of the engagement. Under no circumstance does BKIC charge more
than $1,200 in fees per client, six months or more in advance.
Fees in General
Fees and annual minimums for all services are negotiable based upon certain criteria (i.e., dollar amount
of assets to be advised, anticipated future additional assets, related accounts, investment structure and
account composition, type of assignment, frequency of client meetings, and scope of work involved, etc.).
In lieu of an eleemosynary fee discount, and in its sole discretion, BKIC in certain cases supports a non-
profit client by contributing to specific fundraising events that we believe best support the client’s ongoing
mission.
We typically group certain related client accounts for the purposes of determining the annualized fee.
The client will generally incur additional fees for added services which fall outside of the general scope of
the client agreement, as mutually agreed in advance by both parties.
Under no circumstances will we require or solicit prepayment of any fee, six months or more in advance
of services rendered.
Account Termination
Clients will have a period of five (5) business days from the date of signing the agreement to
unconditionally rescind the agreement and receive a full refund of all fees, if any. Thereafter, the client
has the right to terminate the agreement by providing us with a 30-day written notice at our principal place
of business. Upon termination of any account, any prepaid, unearned fees will be promptly refunded, and
any earned, unpaid fees will be due and payable. If we serve for less than a complete period for which
fees are specified, fees will be calculated and refunded or payable on a daily pro rata basis for the period
for which consulting services were provided.
Other Fees and Expenses
All fees paid to our Firm for investment consulting services are separate and distinct from the fees and
expenses charged by mutual funds and ETFs to their shareholders and other investment and service
provider fees, such as fees charged by collective investment funds, separate account managers, limited
partnerships, etc. Mutual fund and ETF fees and expenses are described in each fund’s prospectus.
These fees will generally include a management fee, other fund expenses and a possible distribution
fee.
Clients are also responsible for all transaction, brokerage and custodial fees incurred as part of their
account management with the selected third-party investment advisers. Please see Item 12 of this
Brochure for important disclosures regarding our brokerage practices.